Choosing relationship predicts best variable-cost estimating, Managerial Accounting

Choose the relationship which best predicts the dependent variable

After exploring a diversity of relationships, you should select the one that can best be employed in predicting the dependent variable. Generally, this will be the relationship which best predicts the values of the dependent variable. The high correlation (relationship) among a potential independent variable and the dependent variable frequently indicates that the independent variable will be a good predictive tool. Though, you should reassure that the value of the independent variable is accessible in order for you to make timely estimates. When it is not, you might require considering other alternatives.

There are different techniques which can be used to estimate the cost function. Examples comprise:

•    Engineering technique
•    Account analysis
•    Regression analysis
•    High low technique
•    Time series analysis
•    Simulation analysis

Posted Date: 12/4/2012 7:36:02 AM | Location : United States

Related Discussions:- Choosing relationship predicts best variable-cost estimating, Assignment Help, Ask Question on Choosing relationship predicts best variable-cost estimating, Get Answer, Expert's Help, Choosing relationship predicts best variable-cost estimating Discussions

Write discussion on Choosing relationship predicts best variable-cost estimating
Your posts are moderated
Related Questions
Introduction to pricing decision A pricing decision is one of the most crucial and difficult decision that a firm has to make. It is one of the most difficult decisions. Such

You are charged with describing the important considerations in the decision-making process to upper management. In your response, be sure to include the following: • A descript

A bill is explained as an unconditional order in writing, addressed through one person to the other, signed through the person providing it, requiring the person to whom it is addr

what is cross elasticity of demand? is it positive for substitute or compliments? show in a diagram relating to the demand for the coffee to the price of tea

From the subsequent financial data describe: a) How the airline company has grown-up b) How the company has been capable to earn grater margins at higher levels of sales

State Factors determining Working Capital requirement.

Decision Making Environment There are four main environments within that decisions can be done. These are: •    Certainty •    Risk •    Fundamental uncertainty •    Compet

Explain performance budgeting according to seal and summers According to seal and summers performance budgeting comprises three elements:  a) The result (final outcome)

Attributes of good information 1) Information is anything that is communicated and is sometimes said to be processed data. It is data processed in such a way as to be of meaning

Cause Company is planning to invest in a machine with a useful life of five years and no salvage value. The machine is expected to produce cash flow from operations of $20,000 in e